BlackBerry 10 Will Flop, Samsung Might Buy RIM: Jefferies

BlackBerry 10 Will Flop, Samsung Might Buy RIM: Jefferies
user1462590383 / Pixabay

BlackBerry 10 Will Flop, Samsung Might Buy RIM: Jefferies

Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM), the maker behind the once popular BlackBerry smartphone, has been struggling to stay afloat in the last few years.  The company’s repeated attempt to release BlackBerry 10 keeps getting pushed back thanks to financial difficulties. It’s easy to see that the future of BlackBerry is looking rather bleak and now one financial analyst says what we’ve all been thinking: another big tech company will purchase RIM in the near future.

Peter Misek from Jefferies & Company claims that although BlackBerry 10 might be a major improvement from previous operating systems, it won’t be enough to save the company and they may need a little help from the outside. Misek suggested that Samsung Electronics Co., Ltd. (LON:BC94) could be the tech company that buys it out in hopes to enhance their own products and brand.

Gates Capital Management Reduces Risk After Rare Down Year [Exclusive]

Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy, have produced a 12.6% annualised return over the past 26 years. The funds added 7.7% overall in the second half of 2022, outperforming the 3.4% return for Read More

He reported to All Things Digital that “RIM is attempting to revive discussions with Samsung regarding a BB10 licensing deal.”  He doesn’t know if the companies have started the discussions yet nor is he certain about how far they are in the discussion.

There have been various rumors over the last few months about Samsung possibly acquiring RIM but the former has denied the possibility. Earlier this year, James Chung(spokesman for Samsung) stated to Reuters that the company has not considered buying RIM and they have no interest in doing so.

Another possible option that might save Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM) is if they can get another company to license BlackBerry 10.  The company’s chief executive officer Thorsten Heins certainly favors this idea. Earlier this week he told Telegraph, “To deliver BB10 we may need to look at licensing it to someone who can do this at a way better cost proposition than I can do it. There’s different options we could do that we’re currently investigating.”

Right now RIM has a lot to think about regarding the future of BlackBerry.

No posts to display